General Discussion Topics, page-11822

Just. Plain. Wrong.
Its a 200kt Capacity for SC6 (spod) and at $800/t that is US$160M.
It has a 23kt Lithium carbonate plant capacity current market price $13k/t so US$300M annual revenue.
Plan is to install a 30kt Lithium hydroxide capacity in coming years current market price $16.5k/t so US$500M
Cost of Capital is extremely low thanks to the acquisition and very favourable financing terms from Quebec Govt.
On the Hydroxide model if we said a production cost of $2k/t that is a Nett Profit of US$435M pa which is about AUD 9.7c per share per year.
Yes cost models differ but an average of world producing miners will guide you to a Rev to MC factor of about 4.5 so if we take the hydroxide model of $500M that will land you at a MC of circa $2.25b or AUD 50c.
Between Authier, NAL and Tansim ore reserves they will never in my lifetime run out of Lithium to process from their tenements. They will have the largest Lithium hard rock reserves in the Northern hemisphere.
Notes;-
- Calcs based on 6b SOI
- No value attributes to Australian Gold and Lithium
- No escalation in spot price factored